FELTON -- Homeowners in Felton will save double what officials previously expected on their property tax bills next year, according to a news release announcing the county has closed a deal to seal in lower bond rates.

In 2005, voters overwhelmingly approved a 30-year bond measure to purchase the Felton water system from California American Waterworks. The San Lorenzo Valley Water District closed the $10.5 million deal three years later, and the remaining balance now stands at $9.5 million.

When the Board of Supervisors approved a resolution related to the refinancing last month, officials expected to negotiate a 1 percent drop, from 5.1 percent to 4.1 percent. That would have shaved off about $30 from property bills, but under the refinancing deal, the new rate is 3.4 percent.

"It was good news when we decided to move forward, but this is even better news," 5th District Supervisor Mark Stone said in the release.

The bond added $524 to residential customers' property tax bills this year, according to a staff report from last month's meeting. The new deal drops that down to from $464 and $466.